| Mon 25 Feb 2008, 14:22 | | ACC - ACC-Ross Holdings Limited - Issue of shares for cash and redemption of |
|
ACC
ACC
ACC - ACC-Ross Holdings Limited - Issue of shares for cash and redemption of
Gardener Ross Holdings Limited ("GRH") preference shares
ACC-ROSS HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2000/000059/06)
Share code: ACC ISIN: ZAE000077335
("Acc-Ross" or "the company")
ISSUE OF SHARES FOR CASH AND REDEMPTION OF GARDENER ROSS HOLDINGS LIMITED
("GRH") PREFERENCE SHARES
Further to the announcement on SENS on 12 February 2008, Acc-Ross advises that
it has placed 122 million shares for cash under its general authority at an
average price of 62.5 cents, being a 10% discount to the 30 day volume weighted
average price of its securities in accordance with the JSE Listings
Requirements. The balance of 48 million shares is being reserved for a BEE
transaction and long term investors. Alternative arrangements have been
concluded for any further funding required as determined by the rolling 24 month
cash flow forecast.
The majority of the proceeds will be used to redeem the remainder of the GRH
preference shares, which become due at 01 March 2008. GRH preference
shareholders are also advised that the preference dividend for the 3 years
ending 28 February 2008 has been declared by GRH for a total of 46.5% yield, in
line with the coupon rate of the GRH preference shares. The total payment to
GRH preference shareholders, including the preference dividend, amounts to
approximately R53 million.
Following the redemption of the preference shares (a pre-listing obligation) and
due to the recent sale of The Bay, the majority of the remaining borrowings in
the group will only be project related and self liquidating and the overall net
asset position will be improved.
An analysis of the group`s borrowings position reflects the following:
Borrowings Actual Actual Estimated
28 Feb 31 Aug 28 Feb
2007 2007 2008
R`m R`m R`m
Long Term 205,5 156,3 134,7
Short term 74,9 140,7 33,0
Total 280,4 297,0 167,7
Of the estimated remaining borrowings at 28 February 2008, R97 million relates
to the Gardener Ross Golf and Country Estate project funding from Investec Bank
Limited, which is self liquidating against stand sales and R65.7 million relates
to Lizard Point funding in the form of a pre-development loan of R32 million and
self-liquidating debentures of R33.7 million. This reflects a much healthier
borrowings position in the group with only R35.2 million not covered by current
sales pipeline but which borrowings will be settled from future sales. The
other debt in the group comprises of trade creditors, provisions and taxes -
including a deferred taxation liability.
Acc-Ross will now focus on delivery of existing projects as well as acquisition
of new growth projects in line with its stated strategy and continues to seek a
new Black Economic Empowerment partner for the Group.
Johannesburg
25 February 2008
Designated Advisor
Arcay Moela Sponsors
(Proprietary) Limited
Date: 25/02/2008 14:22:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
